in a stick frame market and one of the cheapest markets to build we build with margin at $190 or so a square foot. that will go up over time about 5% or 10% a year to keep up with new build price increases. we are buidling a 3 story walk up and source some of the lowest priced crews.

I like the cash flow and see the potential for increasing rents, but I’m hesitant about overpaying.

This would increase the benefit to where the fee would not be so outrageous that it would hinder the investment.

It is amazing how many times I have seen the cash flow represented as rent - PITI and to compound the issue they did not realize the ADU would increase their property tax.   

If I may, in your experience, is this difficult to accomplish with a HELOC already established?

Owner occupied united increased by 8.4%"Still, although the overall share of households that rented decreased, the number of rented units increased by over a million units (43.3 million to 44.6 million)."

Quote from @Justin Brin: I created a heat map showing the population changes in each state over the past five years (2020–2024).The states experiencing the largest population increases are Florida, Texas, Utah, Arizona, and South Carolina.

This can put a significant strain on your finances and cash flowThey also often require a large down payment themselves and may have a strict repayment schedule that can be difficult to meet, especially if there are unforeseen circumstances or delays in renting the property or generating income from itIn addition, relying on this type of loan may expose you to higher financial stress and the possibility of default if you are unable to meet your loan obligationsThe final decision depends on your overall financial situation, risk tolerance, and your ability to manage the associated costs and obligations

Also know that upon sale sometimes the presence of more water meters increases value.Curious to understand the forum's opinion on the best water meter configuration given costs OR if it’s just not worth it and I should leave the one master meter and stick with RUBS on all 4 units.

Peter Lohmann’s newsletter is a solid source for staying on top of national trends; I’d recommend subscribing if you haven’t already.In Texas, I’ve noticed increased activity, especially in the Dallas-Fort Worth area.